What is the relevance of the price elasticity of demand

Assignment Help Macroeconomics

Reference no: EM13181790

An excise tax may be imposed on a commodity in order to raise revenue for the government, or in order to reduce the consumption of the good.

a) Why are these goals in conflict with each other?

b) What is the relevance of the price elasticity of demand in determining which of the goals is likely to be most fully met?

c) Why do you think excise taxes on gasoline, tobacco, and alcohol are common?

Reference no: EM13181790

Questions Cloud

How many test were sold last year : 350 million test are expected to be sold this year. this represents 114% increase from last year. how many test were sold last year?

What happens to the shape of the rectangle : if a rectangle is redrawn so that its area remains constant but its perimeter increases, what happens to the shape of the rectangle?

For what numbers of check per month will the acu-checking : the hudson bank offers two checking-accont plans. their anywhere plan charges $.20 per check whereas their acu-checking plan cost $2 per month plus $0.12 per check. for what numbers of check per month will the acu-checking plan cosl less?

What is the probability that the sample contains : customer from Cavallaro's Fruit Stand picks a sample of 4 oranges at random from a crate containing 65 oranges, of which 5 are rotten. What is the probability that the sample contains 1 or more rotten oranges.

What is the relevance of the price elasticity of demand : Why are these goals in conflict with each other? What is the relevance of the price elasticity of demand in determining which of the goals is likely to be most fully met? Why do you think excise taxes on gasoline, tobacco, and alcohol are common?

In how many ways can a subcommittee of seven be chosen : In how many ways can a subcommittee of seven be chosen from a Senate committee of six Democrats and six Republicans if all members are eligible?

In how many ways can the six books be arranged : In how many ways can the six books be arranged on the shelf if books on the same subject matter are placed together?

In how many different ways can can the series be completed : In the World Series, one National League team and one American League team compete for the title, which is awarded to the first team to win four games. In how many different ways can can the series be completed?

Find the price that brady investment corp paid : The price paid by Brady Investment Corp resulted in Brady having a 7% annual yield on their sixteen-year investment. Find the price that Brady Investment Corp paid Stewart Financial Enterprises.

User Account

All Pages